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An auditor uses variables sampling when she/he is attempting to Determine if accounts receivable is based on a company's credit policy If it is
An auditor uses variables sampling when she/he is attempting to
Determine if accounts receivable is based on a company's credit policy
If it is suspected that a shipping department employee may be re-routing shipments to her personal address
The company is not including all of the accounts payable in their general ledger
You should use variables sampling in all of the above situations.
You wish to construct a variables sampling plan to audit the investments account and have a sampling risk at 5%, you wouldÂ
Certain that you will catch any discrepancies in the accounts
Is too low a sampling risk making it too inefficient to use sampling
Would be 95% confident that you will discover any discrepancies in the account.
You would use attribute sampling not variables sampling to audit the balance in the investment account
